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Big First-Half Loss Roils Management At Capgemini

The CFO resigns after the consulting firm loses $165 million during the first half of fiscal '04.
IT-services firm Capgemini SA has replaced its CFO following a disappointing first half of 2004. The company named Nicolas Dufourcq as its new CFO, replacing William Bitan. Capgemini says Bitan resigned to pursue personal interests. Dufourcq is a former CEO of French Internet service provider Wanadoo.

For the first six months of 2004, Capgemini reported a net loss of $164.7 million, compared with a $109.8 million loss during the same period a year ago. The company says the loss stems in part from cost overruns associated with IT-services contracts signed in 2001 and 2002. The company also blamed poor performance in its North American operations, where revenue fell 22% in the first half.

To shore up its bottom line, Capgemini says it plans to sell unprofitable assets valued at $488 million. The company wouldn't say which assets will be divested or when they would be put up for bid.